When we all think of Land Rover we instantly think ‘Made in Britain’. Jaguar Land Rover warned today that a “bad” Brexit deal would threaten £80bn worth of future investment plans for the UK and may force it to close factories. We cannot lose Land Rover in the UK, this would be a massive blow to English car manufacturing and the iconic British brand!
Land Rover needs greater certainty
Jaguar Land Rover chief executive Ralf Speth said: “A bad Brexit deal would cost Jaguar Land Rover more than £1.2bn profit each year.
“As a result, we would have to drastically adjust our spending profile. We have spent around £50bn in the UK in the past five years – with plans for a further £80bn more in the next five.
“This would be in jeopardy should we be faced with the wrong outcome.”
Mr Speth said the firm urgently needs “greater certainty” to continue to investing heavily in the UK. If I’m forced to go out because we don’t have the right deal, then we have to close plants here in the UK and it will be very, very sad. This is hypothetical, and I hope it’s an option we never have to go for.”
You may remember recently JGS4X4 wrote an article reporting on how tax changes on diesel cars and Brexit had already taken its toll on the British car maker Land Rover.
Things have got to get better for JLR
Not only do they have plants in Halewood and Solihull, but also manufacturing plants in Castle Bromwich and Birmingham where they make Jaguar cars. Last year, it made more than 600,000 cars, 20% of which were sold to mainland Europe, one of its biggest markets.
JLR said that it spent £5.67bn with UK suppliers of production parts during its last financial year, as well as £5.37bn with EU-based businesses.
It employs 40,000 people directly and 260,000 work in its supply chain. That is a lot of revenue to lose in the UK and an awful lot of jobs!
JLR insiders say £80bn worth of future investment in the UK over the next five years “could be lost”.
The intervention of such a major employer – which in many ways is rightly perceived as more British than the likes of BMW, Airbus and Nissan – will heap more pressure on the government ahead of a crunch meeting of government ministers on Friday. At this meeting, the business hopes the government will finally settle on its own preferred version of the UK’s future economic relationship with its largest market.
Business Secretary Greg Clark said the government was “determined” to make sure JLR could “continue to prosper and invest in Britain”.